About Pick of the Day

Every day, I will try to find what I believe is the best looking short term currency trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology behind price movements in the foreign exchange markets, so you can learn to analyze your own currency charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

Trade Review: USD/JPY

It looks like I underestimated the correction as the pair rose up to our short entry, but kept on going! The pair finally found resistance around the 116.40 area before dropping as the pair sold off after the quarterly GDP report was released at 2.2%. Looks like a “buy the rumor, sell the fact” trade scenario would explain that event and how the pair rose after a weaker New Home Sales number came out weaker than expected at 1.0M new homes.

In any case, it’s another trade lost as we continue to try to adapt to this low volatility trading environment.